Oct 28 (Reuters) – GSK beat third-quarter sales and profit expectations on Wednesday, driven by demand for specialty medicines after the drugmaker began a strategic overhaul under CEO Luke Miels to accelerate growth and prepare for looming patent losses.
However, shares fell as much as 5.4% in early trading as investors were unconvinced by GSK’s push to build its pipeline and promote a next phase of growth through a £1.9 billion ($2.52 billion) cost-savings drive announced in July.
While a 15% jump in specialty HIV and respiratory medicines sales drove the turnover beat for the three months to September 30, revenue from GSK’s vaccines business and asthma drug Exdensur, which has been on the market for just under a year, missed expectations.
“With no major pipeline updates just now, Miels will be hoping next year becomes one where the restructuring of the business begins to show in trial results,” said Quilter Cheviot analyst Sheena Berry.
Shares were down 3.8% to £18.51 at 0856 GMT, and the company is set to erase most of the gains seen this year if the losses hold.
PIPELINE PUSH AND TARGETS MAINTAINED
GSK has said it will free up investment for new medicines and support a goal of generating more than £40 billion in annual revenue by 2031 as the company also rebuilds its cancer business.
While maintaining its annual outlook, it said R&D spending is expected to grow faster than sales. It expects to start 22 late-stage studies by the end of the year, 18 of which are already underway, focusing on specialty medicines and vaccines.
“We remain focused on operational delivery, execution and accelerating R&D,” Miels said in a statement.
The urgency behind the overhaul reflects GSK’s efforts to reduce its reliance on dolutegravir, the blockbuster HIV medicine expected to face patent expiry-related pressures between 2028 and 2030, and develop longer-acting alternatives.
The drugmaker continues to expect 2026 turnover growth in the upper half of its 3%-5% forecast range and core earnings-per-share growth in the lower half of its 7%-9% range. GSK also maintained its operating margin outlook at “stable to improving”.
Core profit for the three-month period ended September 30 was 54.6 pence per share after revenue rose 5% at constant-currency rates to £8.89 billion, beating analysts’ expectations of 50.4 pence and £8.84 billion respectively.
GSK took a £328 million charge related to its savings drive in the quarter.
($1 = 0.7511 pounds)
(Reporting by Sri Hari N S, Pushkala Aripaka in Bengaluru and Bhanvi Satija in Madrid; Editing by Sherry Jacob-Phillips and Babrara Lewis)
